Do Family Business Leaders Really Cooperate with Non-Family Executives - Process Challenges of Professionalization

Abstract

Stewart & Hitt (2012) concluded in their literature review that we need more insights into the process of professionalization of family firms. Some pertinent questions not much researched are - what processes do family firms follow to professionalize? why do only some of those approaches work?, and what are these approaches? To find the answers we studied professionalization processes at two Indian family controlled businesses. We found that professionalization process at the top management level entails cooperation and role clarity between family business leader and professional manager. We conclude that there is need to have perfect chemistry and understanding between them to manage the undefined areas of responsibility between them, a zone of managerial ambiguity or “No Man’s Land”. The paper discusses and generates propositions for the processes of professionalization.

Keywords: Professionalization, Transition, Letting-go, Cooperation, Family Business Life Cycle, Leadership